Prosafe SE: First quarter 2016 results

Operating profit for the first quarter of 2016 amounted to USD 21.9 million and
net loss was USD 1.8 million. Utilisation of the fleet was 37 per cent.

Operations
Utilisation of the fleet was 37 per cent in the first quarter of 2016 (80 per
cent in the first quarter of 2015).

Safe Scandinavia Tender Support Vessel ("TSV") commenced a contract in mid-March
in Norway with a firm period through to July 2018. Drilling support operations
commenced in early April. The mobilisation fee of USD 12 million for the TSV was
recognised as income in the first quarter.

Safe Zephyrus was delivered from the Singapore construction yard in the first
quarter of 2016 and commenced transit to the North Sea. The vessel is scheduled
to commence its first contract in Norway early in Q3 2016.

Safe Notos was delivered from COSCO, (Qidong) Co., Ltd. in the first quarter of
2016 and is currently in international anchorage offshore Singapore. The vessel
was delivered to carry out a 4.5 year contract of ca. USD 145 million pursuant
to a letter of intent which was subsequently cancelled.

Safe Zephyrus and Safe Notos are not included in the first quarter utilisation
ratio above.

Safe Boreas commenced a contract in the UK in mid-March.

Safe Concordia and Safe Caledonia were fully contracted during the quarter.

Regalia was off-hire in the quarter and will commence a contract in the UK
during May.

Safe Bristolia was completing class renewals in the yard during the quarter and
is scheduled to commence a contract in the UK during May.

Safe Astoria was off-hire in the quarter and is currently cold-stacked in Batam,
Indonesia.

Jasminia and Safe Britannia were off-hire during the first quarter and Safe
Hibernia came off contract mid-February. Based on a strategic fleet review,
Prosafe has decided to scrap these three vessels.

The contracts for Safe Lancia and Safe Regency were suspended in mid-March 2016
and the vessels remained in Mexico in the first quarter. Safe Lancia is being
prepared for cold-stacking in the US. Safe Regency is being mobilised to a
suitable lay-up location.

Prosafe and Statoil (U.K.) Ltd agreed to re-phase the contract for the Mariner
Project on the UK Continental Shelf of the North Sea from 2016 into 2017. A re-
phasing charge of USD 30 million has been recognised as income in the first
quarter 2016.

The Company has been working to optimise fleet deployment and utilisation in a
situation where the fleet renewal strategy is being completed while the market
is historically soft and contracts are being suspended. Examples of these are
deferred deliveries, seller's credit and the replacement of Safe Boreas for Safe
Notos for Talisman in the UK. In addition, the Company has decided to scrap
three of its oldest units, respectively Jasminia, Safe Hibernia and Safe
Britannia, and to cold stack other units starting with Safe Astoria.

Financials
(Figures in brackets refer to the corresponding period of 2015)

Operating profit for the first quarter amounted to USD 21.9 million (USD 55.4
million). This decline reflects the lower utilisation of the fleet in poor
market conditions.

Net financial expenses for the first quarter were USD 20.3 million (USD 26.1
million). Interest expenses have increased mainly due to higher interest-bearing
debt.

Net loss amounted to USD 1.8 million (net profit of USD 27 million), and
earnings per share were USD 0.01 negative (USD 0.11 positive).

Total assets at 31 March amounted to USD 2,630.8 million (USD 2,157.5 million),
while the book equity ratio declined to 25.9 per cent (34.5 per cent). Net
interest-bearing debt stood at USD 1,650.7 million (USD 977.4 million).

Outlook
Despite a recent increase in oil price, general market uncertainty remains and
bidding activity is low. Clients remain focused on cost reduction and cash
preservation. Prosafe therefore maintains a cautious view in the near and medium
term and anticipate a possible upturn from 2018.

Financial restructuring
Prosafe is in an ongoing dialogue with the Company's key stakeholders, including
the main shareholders, bondholders, bank lenders and yards, and the Company is
currently working with stakeholders and advisors to evaluate alternatives to
improve the financial situation. The Company has obtained a reduced minimum
liquidity bank covenant of USD 20 million until the end of the third quarter
2016. This temporary reduced level is applicable to both the USD 1.3 billion
facility and the USD 288 million newbuild facility. In addition, the Company
will utilize the 2nd skipped payment option that was granted by the banks in the
previous amendment process closed around year-end 2015. Further amendments to
the bank and bond agreements will, however, be required in order to secure a
robust financial foundation and to safeguard and further strengthen Prosafe's
market leading position in the industry. The dialogue is constructive and the
Company intends to communicate its updated financial plan during the second
quarter of 2016.

Reference is also made to note 5 to the financial statements.

Subsequent events
The Board of Prosafe has appointed Stig H. Christiansen as the new interim Chief
Executive Officer ("CEO") for Prosafe Management AS. He replaces Karl Ronny
Klungtvedt who has agreed to step down. Mr Christiansen will continue to serve
as the Chief Financial Officer of Prosafe Management AS in addition to his
position as acting CEO.

In due course, the Board will start a recruitment process for a new permanent
CEO evaluating both internal and external candidates for the position.

Prosafe is the world's leading owner and operator of semi-submersible
accommodation vessels. The company operates globally, employs 850 people and is
headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange
with ticker code PRS. For more information, please refer to www.prosafe.com

Attachment: Q1 2016 report


Larnaca, 12 May 2016
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact:

Stig Harry Christiansen, Acting CEO and CFO
Prosafe Management AS
Phone: +47 51 64 25 17 / +47 478 07 813

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 65 25 20


This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.


[HUG#2012070]